NEM started fabrication for Shell Carmon Creek

abarrelfullabarrelfull wrote on 31 Oct 2014 14:43

26-02-2014 -

Fabrication of the first major components has started for the Shell Carmon Creek Project, Peace River Alberta, Canada. NEM’s scope includes the engineering, fabrication and supply (Delivery At Place) of three Once Through Heat Recovery Steam Generators (OT-HRSG’s) with diverter system/bypass stacks and vertical duct burner system for supplementary firing.

The purchase contract with Shell Canada Limited was signed December 2012. This was the first contract signed by NEM under the Enterprise Frame Agreement (EFA) with Shell Global Solutions International B.V.. The Carmon Creek project was officially released by Shell Canada for execution end of October 2013.

At Carmon Creek, Shell combined its global procurement reach and technology with access to local expertise to design a facility that is both commercially viable and minimizes environmental impacts. This design includes a novel well delivery system and the use of cogeneration that will also feed power into the Alberta grid; enough to power half a million homes. Once the project is up and running the aim is to virtually eliminate the need for freshwater use for steam generation through recycling of water produced with the oil.

Shell Canada produces bitumen through both thermal and cold production wells in the Peace River oil sands. Bitumen is a form of crude oil that’s so heavy it has to be heated, diluted or processed with lighter hydrocarbons in order to flow through pipelines.

Shell has developed a plan to expand production in the Peace River area using vertical steam drive wells. End of October 2013 Shell has announced its decision to proceed with the Carmon Creek project.

Phase 1 & 2 of the Carmon Creek project is currently being executed and consist of the following main facilities:

  • Three Once Through Heat Recovery Steam Generators, each behind a SGT6-5000F(4) Gas Turbine, including Diverter system/bypass stack (Cogeneration units)
  • Water, Gas and Bitumen Central Processing facility
  • Two Once Through Steam Generators
  • Auxiliary equipment and facilities

The three Cogeneration units will produce steam to the well pads, and gather produced fluids (water, gas and bitumen) from the wells for routing back to the central processing facilities. The central processing facilities will separate bitumen from water and natural gas, which can then be used to produce steam. Diluted bitumen is expected to be exported to existing North American refineries.

The Cogeneration units will enable the production facilities to be self-sufficient in electrical power. Cogeneration units produce an annual average of up to 630 megawatts (MW) of electricity, of which about 500 MW is expected to be sold to the northwest Alberta power grid. The OT-HRSG components will be delivered modularized in sizes till the maximum extent within the transportation window to reduce the field work on site. NEM’s CEO Gerard Van Dijk: “The NEM team is committed to complete this Carmon Creek project successfully for Shell. We expect that our HRSG’s will significantly contribute to Shell Canada meeting their goals for this exciting project.”

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